Money Doesn't Grow on Trees

From the Cornell Daily Sun Column, One Year Out.

Earlier this year, I ended a long term relationship. It lasted throughout all four years of college. But, the distance was too difficult to maintain after graduation; realistically, there were only three locations where we could meet in Manhattan. Thus, by the time I walked into the New York City branch of my Ithaca bank to close the account, I had been cheating on it with another financial institution. Yet, I had delayed severing my ties because of nostalgia — opening that account (which thankfully had been accruing interest despite its lack of use) was my first major independent financial decision.

With Tax Day this Tuesday, I once again contemplated my college account, prompting me to consider finances in the context of this column’s theme — during and after college.

Prior to college, how financially prepared were we? Sure, in high school, the required economics course taught the stock market; growing up, we had an allowance or dabbled in the lemonade stand business. But, did we understand the value of the dollar? Some of us learned it first hand by working a part-time minimum wage job. As a coffee brewer, you realize that half an hour on the job equals one espresso, not to mention the hours you need to clock in order to purchase a pair of Diesel jeans.

By grasping that insight as a student, you will be ahead of the financial planning curve. “If you learn early on how to budget and work with the money you have, you’re in the driver’s seat,” said Ellen Braitman ’90, anchor for Bloomberg Television and author of Dollars & Sense for College Students. “I wrote Dollars & Sense to empower students to take control of their financial lives. Almost a decade later, that message still rings true. Students need to know that money is a tool to get them what they want, career-wise, entertainment-wise, etc.” After graduation that advice translates to the real world where for the first time, despite earlier nudging, we understand the significance of budgeting as we encounter the sticker shock value of life’ s expenses.

As college begins, one of the largest expenses we face is tuition itself, thousands of dollars worth. Despite paying relatively similar amounts of tuition and graduating with similar degrees, our salaries differ depending on career. Continuing with graduate school, we may fall deeper in debt. Seeking to break into a competitive industry, we intern without pay. Among entry level positions, salaries diverge —plug Marketing Coordinator and Consultant into salary.com, for example. In today’s economy, even being paid top dollar may not make ends meet, according to Laurie Hensley, instructor of Personal Financial Management at Cornell. “[Graduates] may be very surprised to learn that the big salary they are earning is not going to be enough to cover all their costs. Planning can prevent them from getting in over their heads financially,” she said.

Let’s plan, beginning with Room and Board. In college, often, housing and food are paid in advance. Residences required a small deposit, not the broker fee, security deposit and guarantors associated with the Manhattan market. “When you get your first paycheck and realize that at least half goes to rent, it’s pretty scary. You immediately rethink the deluxe cable package for the apartment, given that you’re not home enough to watch it,” said Benjy Weiss ’03. Numerous other expenses might incline you to turn lights off frequently and decorate on a dime. One advantage of life after college, however, is that your company may cover your relocation expenses, instead of when you were in college, where you had to ship your boxes yourself.

Also, in college, food is pre-paid with meal plan, Big Red and City Bucks. In the working world, dining out can add up. Rest assured, you can still savor culinary creations, but it’s not necessary to always go gourmet. Meanwhile, the cost of groceries can be so outrageous that it turns into the topic du jour where at a wine tasting with other Cornellians, I had an impromptu discussion of the best-priced grocery stores in town. While our conversation sounded similar to a group of grandmothers, we recognized that the extra cash comes in handy for expenses, including clothing, transportation and entertainment, to name a few.

First, what to wear? In college, many of us lived in jeans. Certainly, there were the fashion conscious who sported designer brands. But, brace yourself for building the working wardrobe with suits that must be dry cleaned. Instead of walking to work as we did to class, we rely upon transportation. “I spend a ton of money on MetroCards, Long Island Railroad tickets and taxis,” said Amy Breitberg ’04. Moreover, after work and on the weekend, entertainmentwise, there is nothing quite like the social scene of college with its student prices for cultural performances and parties. “In a way, frat parties were the best deal out there,” Caitlin Myles ’06 jokes. “Think of how much that was taken for granted compared to $8 drinks now!” Perhaps because there are so many more venues, the added costs can be justified?

While those expenses might be considered luxuries, one necessity, health insurance, is being priced out of recent graduates’ reach. Gone are the days when you could show your Student I.D. at Gannett. Sure, we joked that the nurses would ask if we were pregnant before treating pink eye, but we were lucky to have affordable healthcare. This month, New York Magazine published “The Young Invincibles” where reporter David Amsden writes, “they’re young and healthy and insurance is expensive. As long as they don’t catch the flu, slip on the ice, crash a bike, snowboard into a tree, rupture an appendix or get hit by a bus, everything will be fine. Right?”

That leaves us wondering: what’s left, if anything, at the end of the month? Recent graduates often live paycheck to paycheck. Dan Tevet ’05 emphasizes that it’s difficult to “adjust to the concept of savings. [But] it’s important to create a safety net for future uncertainties. I budgeted in college, but I budget compulsively now,” he said.

While the start of college might have been the first of our independent financial decisions, it’s only the beginning. We shouldn’t let these expenses deter our career dreams, but we must keep in mind our assets and liabilities because money doesn’t grow on trees, at least not yet; we are still waiting for a lab in Duffield Hall to invent one.

Walking Backwards to Work

This Week's One Year Out from the Cornell Daily Sun.

For the next two weeks, I hereby certify you in walking backwards. Your mission as a current student, should you choose to embrace it, is to serve as an instant tour guide to the prospective members of Cornell's Class of 2011. As an ad hoc ambassador, you will be stopped in the morning on your way to class by parents who ask, "How do you like it here?" Later in the day, sporting their Big Red apparel, these future Cornell families will tour the residence halls, questioning occupants about sleeping, studying and socializing in cozy quarters. And at dinner, you will endure longer than usual lines while these guests taste-test award winning Cornell Dining, breathing a sigh of relief upon seeing the wok at Mongo Grill, but worried at the possibility of their children eating waffles topped with ice cream for breakfast.

Be patient students, because you were once one of these visitors during Cornell Days. Before committing to attend Cornell, you conducted extensive research and developed your own ranking as a personalized supplement to U.S. News and World Report's.

Four years later as college concludes, you will once again return to the research and rankings, applying them to a new purpose — the job search. This time of year, the college decisions of high school seniors hang in the balance and the career choices of college seniors are imminent; walking backwards to revisit the college search might propel you forward as you contemplate career options. When looking at job opportunities, examining your choice of employment in the same way you would consider colleges can shed light on the decision process.

Beginning with location, what attracted you to Cornell? For me, walking by waterfalls en route to class epitomized the ideal environment. Sure, as a Southerner, I wondered if I would freeze during the winter. As a blizzard survivor, I barely factored weather into my job search, instead seeking to transition from rural to city. In addition, the working environment where you can spend more than 60 hours a week merits evaluation. Not whether or not you will have a corner office, but instead, are the surroundings dreary or modern? Basically, what is the corporate feng-shui? Your interview offers a limited glimpse of the corporate campus. Regrettably, you can't wander off to explore like on your college visit.

You also can't round the corner to a cubicle to ask future co-workers, "Do you like working here?" Just as you considered who your peers might be at Cornell (I was excited by the international student body and Colleen Lynch '06 by the number of languages spoken on campus), you should evaluate whether or not your co-workers are friendly or competitive. Will you be entering with a freshmen class of recent graduates? Moreover, your manager matters significantly. During a 30 minute interview, it's difficult to evaluate your supervisor's management style, but will she be a mentor or an obstacle? And while the glamor of working for a big name company is exciting, sometimes you can gain more experience as the big fish in a small pond.

In comparison to the vast phonebook- sized courses of study offered at Cornell, it's difficult to visualize the learning opportunities you might gain from a job. However, simply asking about daily responsibilities sheds light upon growth potential. "Just as the primary goal in college was to learn how to think," shares Dan Kasell '02, "similarly, my firm's generalist philosophy — which I was perhaps attracted to because of my experience at Cornell — is meant to produce creative lawyers who know how to think." Broad skills such as those acquired in first jobs allow you to gauge what you do and don't like, serving as stepping stones for future pursuits. Before accepting a position, consider asking yourself the following question which my dad asked me: how will this job prepare you for the next? Yikes, that's planning ahead, but, contemplating your future direction clarifies present goals.

While studying was a top priority in college, so too was ensuring a well rounded environment with extracurricular and social activities. "At my information session I was amazed to learn Cornell had so many student organizations. If you wanted, you could create your own," shares Rachelle Butt '06. From a cappella wars to dance performances, student productions at Cornell were so numerous that often two were scheduled per night, assuring me that I would never be bored. Once you graduate, these activities don't have to be tossed aside because of your job — all work and no play leads to burn out. "A lot of people think that they're willing to work ridiculous hours because it's somehow 'glamorous,' but they are ending up pretty unhappy. Money versus free time, I know it sounds like a no brainer, but you really have to think about what matters to you," William Chang '05 explains. In a roundabout way, you need to find out the average hours, weekend and travel included, before accepting.

Once employed, instead of subtracting from, we are now adding to our bank accounts. Despite our prestigious degrees, the career paths we pursue span wide income ranges. Unless the Bank of Mom and Dad is an option, a wage which covers expenses is essential. "When deciding on a college, I wanted the best college experience I could find, no matter what the cost," shares Brennan Veys '06. "After accruing debts for those four years of college, however, money was a much bigger factor in the job decision." And although retirement seems years away, what are the benefits associated with your job? Is there a 401K, stock, health insurance and vacation?

Returning to that college checklist in the job search reminds us of the broad factors we must consider — location, people, learning, work/life balance and finances — they each matter in similar and new ways. However, when we applied to college, we chose — Early Decision or Regular Admission, committing in December or comparing all our options in April. The second time around, the job application process is more like Rolling Admissions with a binding agreement at the first or best opportunity we receive. Not always able to evaluate all offers at once, we take the plunge, and move forward with the hope of one day walking backwards to lead others down similar paths of success.

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